Crypto is strictly banned in many countries. China is one of them. The crypto market is strictly prohibited in China. But a recent report revealed that these digital currencies are thriving underground even though they are officially banned in China. Even though they are strictly banned by the government, their market continues to thrive!
Currently, many countries have banned crypto very hard for the citizens of that country through the rules and regulations. However, investors from different countries violate the country's strict regulations through informal networks such as VPNs, social media and physical trading in other countries by violating these provisions. Many people are currently involved in digital currencies. Many people are investing in different sites. Citizens are investing in various exchanges under disguise despite the stringent regulations in the countries.
China is one of the countries in the world where crypto is strictly prohibited. Crypto trading is completely banned for citizens in this country and therefore they actively pursue those involved in the sector, resulting in arrests, fines and imprisonment. Citizens of so many hundreds of countries don't stop at crypto trading. Rather they are trading crypto in different ways. Investors are trading using different fake VPNs. A report has come out and it claims citizens netted about $86 billion from the market in 1 year. Another important point is that their trading volume on Binance is around $90 billion per month.
The reason behind this is that many traders had invested huge amounts of money in exchanges before crypto was banned in the country. As a result, some Chinese traders maintained access to accounts they held at foreign crypto exchanges established before the country's alleged ban on digital currencies. We know many people use some kind of mask to hide the links. And this masking is done using Virtual Private Network (VPN). And using it can hide their locations and allow them to bypass geo-restrictions. Also, the country's investors use various social media platforms. Citizens in this country commonly use social media platforms such as WeChat and Telegram to engage in crypto trading. Also they use peer-to-peer to complete transactions. They find buyers and sellers through dedicated groups on these platforms, avoiding the need for traditional exchanges.
There are even many investors who do direct transactions. They often meet in public spaces such as cafes or laundromats to complete these transactions. Many times they exchange crypto wallet addresses through face-to-face meetings or conduct transactions through cash or bank transfers.
We know the country was a former crypto trading and mining hub. But despite this, the country is currently adamant about crypto. The country has selected various sectors to use blockchain. The country advocates using blockchain for applications such as digital identity, livestock tracking and luxury goods. However, unlike Web3's simple decentralized ledger, China mostly insists on using private blockchains. Despite the ban, citizens of China continue to trade in crypto trading. The country is therefore a testament to its decentralized and global nature and a real-world example of how difficult it is for governments to control blockchain-based digital assets. Still, China continues to try to stop the use of crypto.
Posted Using InLeo Alpha